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Brexit Negotiations may not go to Plan (Daniel Johnson)

Brexit Negotiations may not go to Plan (Daniel Johnson)
July 04
08:03 2017

Brussels to play hard ball in Brexit negotiations

It seems Brexit negotiators may have to make a change in stance in regards to exit talks.  The “cake and eat it” plan will have to be ditched. It now seems as though having political control and market access could prove very difficult to achieve. The Department for Exiting the European Union (DExEU) will have to choose what to prioritise sovereignty or the UK economy.

The stumbling block is to have full trade access without the freedom of movement of people. This is where compromises will need to be made for a deal to be struck.

It is looking as though it will come down to two possible outcomes. A high access, low control deal similar to the European Economic Areas (EEA). This I feel would be the best option for Sterling, however it would not be welcomed by leave voters and could cause public uproar. It would mean going through all this economic turmoil for little change to the UK’s original position when Britain was in the EU.

The other option would be to have a low access high control situation similar to the CETA agreement between Canada and the EU. This would be more bespoke but more difficult and time consuming to negotiate. The CETA deal made it easier to export services and goods, which benefited both business and people.

Brexit negotiations will be key to GBP/CHF buoyancy levels for the foreseeable future. There are worries of a slow down in growth globally and as the Swiss Franc is considered to be a safe haven currency Sterling may find more resistance more against CHF than other major currencies.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavor to get back to you as quickly as possible. Thank you for reading.

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Daniel Johnson

Daniel Johnson

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